Cisneros Gets Global with Playboy Deal

1/03/1999 7:00 PM Eastern

By: MIKE GALETTO

Cisneros Television Group accelerated its move to become aprogramming player outside of Latin America and the Iberian Peninsula with its agreementlast month to partner worldwide with Playboy Enterprises Inc.'s Playboy EntertainmentGroup.

The CTG-PEG joint venture, Playboy TV International LLC,will own and develop Playboy-branded channels worldwide. It immediately gives CTG itsfirst footholds in Japan and the United Kingdom, territories where few, if any, Latinoplayers have a presence apart from syndicated programming.

What's more, Playboy TV International plans to launchchannels in Germany and South Korea this year.

CTG owns or has stakes in nine channels, including twojoint ventures with PEG. It's looking to expand its programming slate, with a numberof announcements expected to come during 1999, Cisneros said. The company is eyeing music"both for the delivery of content and the creation of content," he added. Thatcould build upon a budding partnership in Latin America with Canada's Chum Ltd. thatinvolves Chum's MuchMusic channel.

Comedy and science fiction are two other genres in whichCTG aims to expand, Cisneros said.

Playboy TV International LLC will be 80.1 percent owned byCTG and 19.9 percent owned by PEG, although PEG has an option to increase its stake to 50percent over the next 10 years. CTG will contribute $80 million and PEG will throw in $20million.

Playboy TV International will have 100 percent ownership ofthe existing Playboy TV networks in the United Kingdom, Latin America and the IberianPeninsula. It will also own 19 percent of Playboy TV Japan, as well as 100 percent of twointernational AdulTVision networks and two Spice-branded networks. The venture also hasthe right to distribute a Spanish-language channel in the U.S.

Playboy TV International will pay Playboy Enterprises atotal of $100 million over the next five years -- $30 million of which will come when thedeal closes -- in exchange for Playboy's programming and trademarks.

The venture will be based in Miami Beach, Fla., CTG'sheadquarters. However, it will function as an independent company whose executives willreport to a board with representatives from PEG and CTG, Cisneros said.

"We've demonstrated that Miami could serve as aworldwide hub for entertainment," he added, further illustrating CTG's globalambitions.